Shortly after the eleventh hour, bitcoin was sold for roughly $18,200 (406,600 crowns), adding over four percent over the past day. Its price is now the highest since December 14 last year.
The provision of five billion dollars, according to lawyers, gives hope for the payment of deposits of FTX clients, reports CNBC. The November bankruptcy of the second largest cryptocurrency exchange dealt another blow to the entire cryptocurrency market.
Lawyers for FTX said Wednesday they had found approximately $5 billion in liquid assets, including cash and digital assets. But they warned that asset sales could lead to significant pressure on the market, driving down their value.
“Bitcoin has been in a downtrend for more than a year, which is a standard bear market period in the cryptocurrency market,” said Luno cryptocurrency exchange representative Vijay Ayyar. A bearish market is defined as a market where prices fall by 20 percent from their highs and continue to decline.
“Over the past year, we’ve seen a lot of negative events, and when you look at the price response to them, it’s generally been coming down less and less — which suggests that the market is taking the news pretty well,” he continued. According to him, the market can assume that the worst of the current cycle is behind cryptocurrencies.
